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Recently, CACI International Inc. (CACI - Analyst Report) declared that it has won a $53 million Program and Mission Support Services (PAMSS) contract from Federal Emergency Management Agency (FEMA). The company has been chosen by FEMA as one of the four key service providers under the contract, which pertains to indefinite delivery and indefinite quantity stipulations with one base year followed by four option years.

As per the agreement, CACI International shall be providing its specialized professional and mission support services to FEMA’s National Continuity Programs (NCP) Directorate for improving its entire policy approach, operating procedures and test, training and exercise processes. In addition, the company will also offer its expert solutions in the field of software, systems, telecommunications engineering; audit support, financial and internal controls. With the contract, the company will be able to extend its coverage in the business systems and enterprise IT industry.

Previously, CACI International provided its support solutions to manage FEMA’s Integrated Public Alert and Warning System for more than four years. Now, with this contract the company will further strengthen its existing association with FEMA.

Management stated that CACI International’s expert services along with its latest technological processes and concepts are expected to be highly beneficial for FEMA. The company’s support solutions are likely to minimize any kind of external risk for the government through augmenting its efficiency.

Contract wins have forever been the niche strength for CACI International. Recently, the company received a $247 million contract from U.S. Army’s Communications-Electronics Research, Development and Engineering Center (CERDEC) for controlling its Command, Power, and Integration Directorate’s (CP&ID) rapid prototyping and technology insertion programs. The contract is expected to strengthen the company’s presence in the command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) market.

The company, however, should not become complacent with its contract win spree as it faces stiff competition largely from proactive companies. The company competes primarily in the government IT services arena, which, include: CGI Group, Inc. (GIB - Snapshot Report), ManTech International Corporation (MANT - Snapshot Report) and Sapient Corp. (SAPE - Snapshot Report).

The current Zacks Consensus Estimates for CACI International Inc. are $1.50 and $6.63 per share for the first quarter of fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively. The estimates represent a year-over-year growth of 6.79% for the first quarter and 11.67% for fiscal 2013. At present, we have a ‘Neutral’ recommendation on CACI International Inc. The stock currently carries a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.

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